A Chicago-based real estate investment management group purchased Mayo Clinic Square, the mixed-use property across the street from Target Center in downtown Minneapolis.
 
LaSalle Investment Management did not disclose how much it paid for the 220,000-square-foot space, which was formerly known as Block E. However, sources close to the deal told the Star Tribune the sale closed on Friday with a $98 million price tag.
 
If true, it would mean a significant return on investment for two Minneapolis-based real estate developers, Alatus LLC and Camelot LLC. After purchasing the space in 2010 for just $14 million, the companies put $50 million into redeveloping the space in 2015, revamping its interior and exterior.
 
Altogether, the four-story property is 96 percent leased with eight tenants: Mayo Clinic, Jack Links, HDR, Taylor Sports Properties (parent company of the Minnesota Timberwolves and Lynx), Starbucks, Jimmy Johns, Kieran’s Irish Pub and City Works.
 
The space also includes a 531-stall parking garage and a long-term lease to three digital billboards that are attached to the building.
 
“We are very pleased to have completed the acquisition of this unique and exceptionally-positioned asset on behalf of our client,” said Mark McGruder, portfolio manager at LaSalle, in a statement. “Mayo Clinic Square represents a tremendous opportunity to grow our client’s exposure to the high-quality, infill urban property market, with this amenity-rich location, exciting tenant roster, and durable profit income.”

Like what you just read? To receive business news directly in your inbox each Tuesday and Thursday, sign up for our free e-newsletter, Briefcase, and be sure to join the conversation by commenting below.